HC Deb 19 June 1996 vol 279 cc462-3W
Mr. Allen

To ask the Chancellor of the Exchequer if he will list the rate of VAT or comparable tax for each of the countries of the Organisation for Economic Co-operation and Development. [33339]

Mr. Heathcoat-Amory

The standard rates of VAT in the member countries of the OECD which apply VAT are set out in the table.

Rates of VAT in OECD member countries
Country Standard rate (per cent.)
Austria 20
Belgium 21
Canada 7
Czech Republic 22
Denmark 25
Finland 22
France 20.6
Germany 15
Greece 18
Iceland 24.5
Ireland 21
Italy 19
Japan 3
Luxembourg 15
Mexico 15
Netherlands 17.5
New Zealand 12.5
Norway 23
Portugal 17
Spain 16
Sweden 25
Switzerland 6.5
Turkey 15
United Kingdom 17.5

The two remaining member countries of the OECD, Australia and the United States, do not have VAT. Australia levies a wholesale tax, WST, on certain Australian manufactured goods and certain imported goods. A wide range of goods are exempt from WST, and those which are taxable are subject to different rates. The majority of goods are taxable at the rate of 22 per cent., although there are also rates of 12 per cent. and 32 per cent. In the United States, the majority of states impose a retail sales tax, RST, which generally applies to sales of goods to final consumers within the state's jurisdiction. Rates of RST vary according to the state concerned.

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